Kaizen and ITOCHU Agree to Evaluate Opportunities to Explore and Develop Selected International Mineral Projects
30 Janeiro 2014 - 10:21AM
Marketwired
Kaizen and ITOCHU Agree to Evaluate Opportunities to Explore and
Develop Selected International Mineral Projects
Kaizen to receive CDN$5.1 million investment from ITOCHU
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 30, 2014) -
Matthew Hornor, Chief Executive Officer of Kaizen Discovery Inc.
(TSX-VENTURE:KZD), announced today that Kaizen and ITOCHU
Corporation, a prominent Japanese trading and investment house,
have signed a formal agreement to work together to evaluate
opportunities to explore and develop selected, high-quality,
international mineral projects.
ITOCHU will invest CDN$5.1 million in Kaizen through a private
placement in exchange for 8.5 million Kaizen common shares at a
price of CDN$0.60 per share. The transaction, which will give
ITOCHU an ownership stake of approximately 6.35% in Kaizen, is
expected to close on or about February 7, 2014.
In their framework agreement, Kaizen and ITOCHU declare a mutual
desire to work together to identify and pursue areas of potential
cooperation on projects, including possible joint ventures. Each
company will present, for consideration by the other, a number of
mineral exploration and development projects from their respective
existing portfolios or lists of interest.
"Combining strengths with ITOCHU can set Kaizen on a unique
growth trajectory as we advance Kaizen's existing portfolio of
exploration projects and also evaluate new prospects in this market
cycle when holders of a range of potentially attractive resource
projects are seeking funding," said Mr. Hornor.
"Both companies share an interest in reviewing opportunities
where we might use proprietary, best-in-class, geophysical survey
technologies, which are provided through Kaizen's majority
shareholder, HPX TechCo, and are designed to explore for deep,
high-grade deposits.
"This framework agreement, and ITOCHU's investment, are a
further validation of the Kaizen team's view that there is
significant potential for discoveries of buried, world-scale
mineral systems, both on greenfields prospects and around existing
open-pit mines."
Other significant provisions include:
- ITOCHU will receive an opportunity to participate in Kaizen's
existing Fairholme copper-gold project in Australia and its Ebende
nickel-copper-cobalt project in the Democratic Republic of Congo,
at Kaizen's discretion, if the projects require further
investment.
- ITOCHU will use reasonable endeavours to arrange and facilitate
non-recourse project financing and support from Japanese financial
institutions for the development of Kaizen projects in which ITOCHU
makes a direct or indirect (other than through Kaizen)
investment.
- ITOCHU will be entitled to the off-take of minerals, on
commercial terms, from any project jointly developed with Kaizen,
in proportion to ITOCHU's ownership interest in the project. ITOCHU
can negotiate a greater share of off-take if it arranges project
financing from Japanese sources.
- Kaizen and ITOCHU will form a Technical Advisory Committee to
facilitate information exchanges and recommend joint-venture
exploration plans and budgets to Kaizen's board of directors.
- ITOCHU will have the right to appoint one director to Kaizen's
board of directors, subject to certain conditions.
- ITOCHU will have the right to participate in subsequent Kaizen
financings to maintain its percentage interest in Kaizen, subject
to certain continuing ownership thresholds.
The framework agreement setting out the terms of the
ITOCHU/Kaizen collaboration becomes effective on the closing of the
placement. A copy will be filed under Kaizen's profile at
www.sedar.com at that time.
About Kaizen
Discovery
Kaizen is a Canadian
technology-focused mineral exploration company that was formed in
late 2013 through a combination of Concordia Resource Corp. and
assets acquired from HPX TechCo, a 100%-owned subsidiary of High
Power Exploration. Kaizen's existing portfolio of exploration
projects consists of Ebende and Kabongo in the Democratic Republic
of Congo, Fairholme in Australia and Kerboulé in Burkina Faso. A
strong management team and an experienced board, combined with the
improved project portfolio and access to HPX TechCo's leading-edge,
proprietary technology, plus the collaboration agreement with
ITOCHU, will help enable Kaizen to more effectively identify and
advance world-class mineral projects.
More information on
Kaizen is available at www.kaizendiscovery.com
About ITOCHU
Corporation
ITOCHU is one of the leading Japanese trading corporations, with
approximately 130 bases in 66 countries. ITOCHU engages in domestic
trading, import/export, and overseas trading of various products
such as textile, machinery, metals, minerals, energy, chemicals,
food, information and communications technology, realty, general
products, insurance, logistics services, construction, and finance,
as well as business investment in Japan and overseas.
More information on ITOCHU is available at
www.itochu.co.jp/en
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
FORWARD-LOOKING STATEMENTS
Statements in this release that are forward-looking statements
are subject to various risks and uncertainties concerning the
specific factors disclosed here and elsewhere in the company's
periodic filings with Canadian securities regulators. When used in
this document, the words such as "will, could, plan, estimate,
expect, intend, may, potential, should," and similar expressions,
are forward-looking statements. Information provided in this
document is necessarily summarized and may not contain all
available material information.
All such forward-looking information and statements are based on
certain assumptions and analyses made by members of Kaizen's
management in light of their experience and perception of
historical trends, current conditions and expected future
developments, as well as other factors that they believe are
appropriate in the circumstances. These statements, however, are
subject to a variety of risks, uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking information or statements.
Readers are cautioned not to place undue reliance on
forward-looking information or statements.
Kaizen Discovery Inc.Bill Trenaman+1 604 689
8765www.kaizendiscovery.com
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